Where do I report amortized bond premium on tax exempt bonds from1099 box 13 ?

[Leonard]

To report amortized bond premiums on tax-exempt bonds from 1099 box 13 follow these steps. 

With TurboTax Deluxe open.

Select the  Wages & Income tab scroll down to Interest on 1099-I

Select  visit all on the line Forms 1099-INT, 1099-DIV, 1099-OID.

Enter your 1099-INT information, select Continue.

Select I need to adjust the taxable amount, select Continue.

Enter the amount of your premium adjustment (use a negative number if you need to add to the interest reported).

Select the Reason for Adjustment:  I amortized a premium I paid on a tax-exempt bond.

If your bond premium amortization is more than the interest paid on your tax-exempt bonds, only the amount up to your tax-exempt interest can be reduced.

[fwmccvt]

How much of the bond premium am I supposed to adjust.  in other words, how do I figure the amortization on a bond premium

[barbbates00]

The amount I received on my tax form for Box 13 is $536.  When I enter in Turbo Tax, it creates an error asking that Box 1 be filled out asking for Interest income for 2019.  I asked Edward Jones about this and they did not have any information.  What am I suppose to put here??

[dancingbaehr33]

??

[bbates00]

This is for Bond Premium on Tax Exempt Bond

[Deckintosh]

This answer is only for TurboTax Business (not Home & Business).  

1. Enter the 1099-INT information as you normally would (except for the data in Box 13) and select CONTINUE.
2. Answer the question about Special Private Activity Bond Interest (yes or no).  
3. Select ADD MORE INTEREST INCOME and new 1099 INT entry fields appear.
4. (Do NOT reenter the 1099 fields from step 1).  Look through your 1099 Composite forms from your broker to determine whether the premium was from a taxable bond or tax-exempt bond.  Look for the words “Bond Premium” on the statement. 
5. If the premium is from a taxable bond then enter as a negative enter in Box 1.  If from a tax-exempt bond then enter as a negative figure in Box 8.  

NOTE:  This reduces the amount of interest that was earned as a result of the premium that was paid when you purchased the bond.

[JoannaB2]

The amortization of a bond premium on a tax-exempt bond is the excess on its face value or the premium and part of the premium can be deducted from the interests.  To report the amortized bond premium by:

1. Login to Turbo Tax
2. Jump to Income and Expenses.
3. Click Interest on 1099-Int, click edit/add.
4. Enter 1099-Int information, click continue.
5. On question, "Do any of uncommon situations apply?". choose "I need to adjust interest reported on my form:.
6. The next screen, "Tell us about your interest adjustment", enter the adjustment amount.
7. Scroll down under Reason for adjustment and choose "I amortized  a premium paid on a tax-exempt bonds".

[504b3330]

how do I report it on a Form 1041?

[DaveF1006]

If you are preparing a 1041 Trust Account and working on 1099-INT, check the box that says check this box if you have an amount in Box 11. Press continue and in the next screen, it will allow you to enter your Bond premium. 

[Prethen]

Would I only include the bond premium from the state with which the tax is exempt or all the bond premiums from all states as a total?

[DaveF1006]

@Prethen Enter these individually according to the following instructions. 

1. Enter the 1099-INT information as you normally would (except for the data in Box 13) and select CONTINUE.
2. Answer the question about Special Private Activity Bond Interest (yes or no).  
3. Select ADD MORE INTEREST INCOME and new 1099 INT entry fields appear.
4. (Do NOT reenter the 1099 fields from step 1).  Look through your 1099 Composite forms from your broker to determine whether the premium was from a taxable bond or tax-exempt bond.  Look for the words “Bond Premium” on the statement. 
5. If the premium is from a taxable bond then enter as a negative enter in Box 1.  If from a tax-exempt bond then enter as a negative figure in Box 8.  

NOTE:  This reduces the amount of interest that was earned as a result of the premium that was paid when you purchased the bond.

[ Edited 02/18/22|06:42 PM PST]

[21-Hearthstone]

Entered total interest, entered bond premium

On forms Turbo asks for plus or minus sign 

Do not understand

[21-Hearthstone]

The message is clear as to procedure, but is the bond premium for tax exempt entered as a negative or a positive?

[MarilynG1]

If you elect to reduce your interest income (negative value) on a taxable bond by the amount of taxable amortizable bond premium, identify the amount to be subtracted as "ABP Adjustment.".  The premium is amortized over the life of the bond on a pro-rata basis.

Click this link for details on reporting Amortized Bond Premiums.